EIB and Stanbic Bank Zimbabwe Launch €20M Credit Line to Empower Women Entrepreneurs and SMEs

The European Investment Bank (EIB Global) and Stanbic Bank Zimbabwe have announced a landmark €20 million (ZWG 525.9 million) credit line aimed at providing long-term loans under favorable conditions to Zimbabwean small and medium-sized enterprises (SMEs). The initiative prioritizes businesses owned or led by women, companies that employ a substantial number of women, and enterprises that offer services specifically targeting women.

Zimbabwe, like much of Africa, boasts one of the highest percentages of women entrepreneurs globally, with over half of its SMEs being women-led. However, limited access to credit remains a significant barrier to growth for these businesses. Recognizing this challenge, the EIB-Stanbic partnership will bridge the financing gap and promote women's economic empowerment through tailored financial solutions.

This initiative aligns with the EU’s Global Gateway strategy, which seeks to narrow the global investment gap and support sustainable economic development worldwide. The facility also contributes to the 2X Challenge, an international initiative that mobilizes investment to enhance women's participation in the economy by improving access to finance, leadership opportunities, and quality employment.

Thomas Östros, EIB Vice-President responsible for diversity and inclusion as well as operations in Southern Africa, emphasized the economic impact of the initiative. "With over half of Zimbabwean SMEs owned by women, EIB Global's support for these businesses will drive economic growth, create jobs, and boost national prosperity. Backing women in business contributes to more sustainable and inclusive development, strengthening local communities."

Stanbic Bank Zimbabwe's Chief Executive, Solomon Nyanhongo, underscored the alignment of this initiative with the bank’s commitment to national growth. "Zimbabwe is our home, and we drive her growth. Supporting SMEs and women-led enterprises fosters economic inclusion and national development. By empowering these businesses, we are not only uplifting individuals but also strengthening families, communities, and the broader economy. This partnership will provide much-needed medium-term funding, unlocking opportunities for women entrepreneurs and SMEs across Zimbabwe."

Jobst von Kirchmann, European Union Ambassador to Zimbabwe, highlighted the transformative potential of investing in women. "Investing in women is investing in Zimbabwe’s future. The Team Europe Initiative on Gender Equality and Women’s Empowerment is dedicated to creating meaningful change for Zimbabwean women. This dedicated credit line complements our efforts under the Global Gateway Strategy, unlocking opportunities for women entrepreneurs and fostering inclusive economic growth. This collaboration between the EU, EIB Global, and Stanbic demonstrates our collective commitment to financial inclusion and women's economic empowerment."

The EIB loan is backed by the European Commission and EU member states through the African, Caribbean, and Pacific Trust Fund (ACP Trust Fund). The initiative is set to drive financial inclusion, job creation, and sustainable economic development, ensuring a more equitable future for Zimbabwean women in business.